Advertisements

The retired penny – how it can actually make you money.

4 Mar

pennies

If you live in Canada, you know that they recently retired the penny. Starting in February businesses are either rounding up to the nearest nickel or rounding down to the nearest nickel.

So if your purchase is $1.83 with tax you will be charged $1.85.

If your purchase is $1.82, you will be charged $1.80.

If you pay with cash, these rules apply, BUT…… if you pay with debit or credit there will be no rounding and it will remain the regular price.

So, here’s my little tip. Everytime something is going to be rounded up, pay with your credit card or debit card. Every time something is going to be rounded down, pay with cash.

If every purchase you save $.01 or .02 cents and  you make 1000 purchases in a year…most likely its more like 1000 purchases per month…you will be saving $10.00/ $20 over the course of that year on those purchases. Over 12 months, that can add up to over $100. Not a lot, but if you make those same purchases that are rounded up and pay with cash, you will be out that 1,2 or 3 cents per purchase which on the same number of purchases will be 10, 20 or $30 each month and over the course of the year that the government has gotten a decent amount of money out of you. Imagine that multiplied by millions of Canadians.

Yeah, suddenly that useless little penny means more than we thought it did.

Go ahead, give it a try. Save yourself some cash.

Advertisements

2 Responses to “The retired penny – how it can actually make you money.”

  1. Mo' Money Mo' Houses (@momoneymohouses) March 4, 2013 at 5:41 pm #

    Interesting, I never thought about it like that.

    • myjampackedlife March 5, 2013 at 6:05 pm #

      i doubt many have, but its good to think about anyway. if you can do it then why not save along the way.

By commenting on this post, you WILL become my new best friend!!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: